The target companies are owned by a private equity fund controlled by CITIC Private Equity Funds Management Co., Limited, an alternative asset manager in China, and its affiliated parties.
The offer has been accepted, with terms agreed by both parties, and the total enterprise value of the acquisition is RMB3.8 billion, with a further RMB500 million contingent on the acquisition by the target companies of the property interests in the site.
This transaction is subject to entry into definitive agreements as well as the completion of certain conditions precedent to the closing of the transaction, according to the company.
BJ14, located in the Shunyi district, is one of the largest data centre assets in the Beijing market, according to the company.
It is located adjacent to the company’s Beijing 5 data centre and eight kilometres from its data centre campus comprised of Beijing 10, 11, and 12, forming a cluster in the Shunyi District of Beijing, which can generate operation synergies.
The company said that BJ14 has a net floor area of over 19,000-sqm. It is fully operational and is currently approximately 68% utilised.
“We are very excited to further expand and strengthen our position in Beijing with this acquisition,” said William Huang, Chairman and Chief Executive Officer, GDS.
“BJ14 is a rare opportunity in urban Beijing with large-scale and high-quality capacity and first-class customer profile.
“Shunyi District is a highly sought-after location by major internet companies and home to an increasing number of world-renowned hyperscalers.
“We will continue to pursue such acquisition opportunities with strategic value in a disciplined way, and further expand our market share."
